Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items

ABSTRACT

Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items are provided. These systems and methods preferably include the trading of futures and options contracts, which will provide the liquidity and distribution network for luxury items. Possible embodiments of these systems and methods include the trading of futures and options contracts for diamonds and wine. Another embodiment of this invention preferably includes generating indexes for diamond prices, wine prices, luxury item prices, housing values, mortgage prepayments, privately-held companies or for anything with from sufficiently liquid points of value. Another embodiment of this invention preferably includes a centralized data base for retrieving closing and current auction prices for determining the value of, and best method for the auctioning of various items. The data provided by this data base would improve liquidity by creating greater price transparency.

CROSS REFERENCE TO RELATED APPLICATION

This application claims priority from U.S. Provisional Application No.60/340,328 filed on Dec. 13, 2001.

BACKGROUND OF THE INVENTION

Markets for luxury items such as diamonds and fine wine tend to beilliquid at least in part because of the difficulty in acquiring luxuryitems and the difficulty of bringing the luxury items to market. Thepresent invention relates to systems and methods for improving theliquidity and distribution network for luxury items.

It would be desirable to provide systems and methods that provide theliquidity and distribution network for luxury items.

SUMMARY OF THE INVENTION

It is an object of this invention to provide systems and methods thatprovide the liquidity and distribution network for luxury items.

In a system and method according to the invention, a user would be ableto purchase or sell futures or options contracts for luxury items usinga computer-based futures and options exchange system. The system maypreferably list a number of futures or options contracts of a particularluxury item based on user-inputted criteria. Based on this information,the user could either select an existing contract or, alternatively,create a new contract around the desired criteria. The user may thenview the contract status and execute a trade.

Further systems and methods according to the invention, provide acomputer based system for electronically collecting market informationto aid in the settlement of futures or options contracts. For aparticular item for which a futures or options contract is offered,relevant market data from various sources could be captured, compiled,sorted, and updated by the computer system to generate an index for thatparticular item. This index could then be used to help settle futuresand options contracts.

Alternatively, liquidity and distribution of various illiquid items canbe improved through the creation of a centralized data base and systemfor retrieving closing and current auction prices for determining thevalue of, and best method for auctioning: goods, services, real assetsand securities. The systems and methods according to the inventionprovide a centralized computer data base(s) for storing relevant data onthe auction item or auction object. The centralized data base isconnected to various on-line auctions agents. In this way auction dataon an item, preferably updated in real-time or at least updated at somepre-determined interval, can be accessible to all who need theinformation for valuation and determining the best auction method.

BRIEF DESCRIPTION OF DRAWINGS

Further features of the invention, its nature and various advantageswill be apparent from the following detailed description of thepreferred embodiments, taken in conjunction with the accompanyingdrawings, in which like reference characters refer to like partsthroughout, and in which:

FIG. 1 is an illustration of an electronic implementation of a system tosell futures and options contracts for luxury item in accordance withsome embodiments of the present invention;

FIG. 2 is an illustration, in greater detail, of an electronicimplementation of a system to sell futures and options contracts forluxury items in accordance with some embodiments of the presentinvention;

FIG. 3 is an illustration of a typical grading report for a diamond inaccordance with some embodiments of the present invention;

FIG. 4 is an illustration of a flow chart representing the process ofoffering a futures contract for one or more diamonds based on one ormore standardized profiles in accordance with some embodiments of thepresent invention;

FIG. 5 is an illustration of a flow diagram representing the process offorming a futures contract for a diamond based on the difference betweenthe values of two different profiles in accordance with some embodimentsof the present invention;

FIG. 6 is an illustration of an interface for selecting wine that may bepresented in accordance with some embodiments of the present invention;

FIG. 7 is an illustration of a chart of data for wine futures contractsin accordance with some embodiments of the present invention; and

FIG. 8 is an illustration of a chart of data for wine options contractsin accordance with some embodiments of the present invention.

FIG. 9 is an illustration of an interface for searching the data base ofauction information based on user inputted criteria in accordance withsome of the embodiments of the present invention.

FIG. 10 is an illustration of an interface for displaying the results ofa search of the data base of auction information based on user inputtedcriteria in accordance with some of the embodiments of the presentinvention.

DETAILED DESCRIPTION OF THE INVENTION

This invention relates to creating systems and methods for providingfutures and options contracts for luxury items—i.e., items that add topleasure or comfort but are not absolutely necessary to survival ofhumans or animals. The following embodiment of the invention relates todiamonds. Nevertheless, this embodiment does not limit the invention tothis particular subject matter. Rather, it is provided for illustrationof the invention and not to limit it to a particular commodity ormarket.

Typically, diamonds are classified according to four maincharacteristics to determine the value of a diamond: clarity, color,cut, and carat weight (one carat 0.007 of an ounce).

Color of a diamond may include blue-white, finest white, fine white,white, commercial white, top silver cape, silver cape, light cape, cape,dark cape, finest light brown, fine light brown, light brown, and darkbrown. Commercial color scales may be based on letters of the alphabetwith AA being on one end of the spectrum, to D, which covers theprevious list from blue-white to silver cape. Most common of colorscales is the scale that ranges alphabetically from D to Z whichcorresponds to a scale of colorless to lightly colored. The value of thediamonds generally decrease as the presence of color increases.

The cut of a diamond also determines the value of the diamond. Certaincuts, such as brilliant, emerald, pear-shaped and marquise, are the mostcommon. Yet, even among these common cuts, the different geometries ofeach particular stone affect the value of the diamond. Particularlydesirable geometries are well-known in the industry. Highlylight-reflective geometries are generally regarded as the most valuablebecause they provide the most luster, fire and brilliance as seen by aviewer.

The value of diamonds also depend on the clarity of the diamond—i.e.,the presence, or absence, of carbon inclusions in a diamond. For thepurposes of this application, clarity of a diamond is defined as In themost commonly-used scale, the clarity ranges are represented as a rangefrom flawless to VVS1 to VS to SI to I. This represents a range fromflawless to very slightly included to slightly included to included.Value varies proportionally with the clarity of the diamond—i.e., themore clear the diamond, the more valuable.

Presently, at least in part because of their scarcity, the market forhigh quality diamonds is very tightly controlled. One purpose of thesystems and methods of the present invention is to provide for greaterliquidity in the diamond market.

Referring to FIG. 1, exemplary system 100 for implementing the presentinvention is shown. As illustrated, system 100 may include one or moreworkstations 101. Workstations 101 may be local or remote, and areconnected by one or more communications links 102 to computer network103 that is linked via communications links 105 to server 104. Server104 is linked via communications link 110 to back office clearing center112.

In system 100, server 104 may be any suitable server, processor,computer, or data processing device, or combination of the same. Server104 may be used to process and settle executed trades of futures and/oroptions contracts for luxury items.

Computer network 103 may be any suitable computer network including theInternet, an intranet, a wide-area network (WAN), a local-area network(LAN), a wireless network, a digital subscriber line (DSL) network, aframe relay network, an asynchronous transfer mode (ATM) network, avirtual private network (VPN), or any combination of any of the same.Communications links 102 and 105 may be any communications linkssuitable for communicating data between workstations 101 and server 104,such as network links, dial-up links, wireless links, hard-wired links,etc.

Workstations 101 may be personal computers, laptop computers, mainframecomputers, dumb terminals, data displays, Internet browsers, PersonalDigital Assistants (PDAs), two-way pagers, wireless terminals, portabletelephones, etc., or any combination of the same. Workstations 101 maybe used to enter into and proceed with the trades that relate to thepresent invention, and display trade, benchmark, or spread informationto users of system 100.

Back office clearing center 112 may be any suitable equipment, such as acomputer, a laptop computer, a mainframe computer, etc., or anycombination of the same, for causing trades to be cleared and/orverifying that trades are cleared. Communications link 110 may be anycommunications links suitable for communicating data between server 104and back office clearing center 112, such as network links, dial-uplinks, wireless links, hard-wired links, etc.

The server, the back office clearing center, and one of theworkstations, which are depicted in FIG. 1, are illustrated in moredetail in FIG. 2. Referring to FIG. 2, workstation 101 may includeprocessor 201, display 202, input device 203, and memory 204, which maybe interconnected. In a preferred embodiment, memory 204 contains astorage device for storing a workstation program for controllingprocessor 201. Processor 201 may use the workstation program to presenton display 202 trade information relating to bids, offers, executedtrades, and luxury item information to a user of workstation 101.Furthermore, input device 203 may be used by the user to enter such bidsand offers, modify them, and to enter into trades involving the futuresand/or options contracts for luxury items.

Server 104 may include processor 211, display 212, input device 213, andmemory 214, which may be interconnected. In a preferred embodiment,memory 214 contains a storage device for storing trade informationrelating to the trades. The storage device further contains a serverprogram for controlling processor 211. Processor 211 uses the serverprogram to transact the purchase and sale of the futures and/or optionscontracts. Processor 211 may include futures and/or options calculationprocessor 215 that may be implemented to determine the benchmark valuesbased on market conditions or other criteria that may relate to theitems. Processor 211 may include trade processor 216 that executes andprocesses trades.

Back office clearing center 112 may include processor 221, display 222,input device 223, and memory 224, which may be interconnected. In apreferred embodiment, memory 224 contains a storage device for storing aclearing program for controlling processor 221. Processor 221 uses theclearing program to clear executed trades. Clearing executed trades maypreferably include exchanging currency for a future commitment or afuture option.

A standard diamond profile, according to the invention, based on certainpre-determined characteristics, may be used to standardize the diamondsuch that the diamond may be bought and sold in a futures and/or optionscontract market. A standard diamond profile for future delivery mayinclude the following: a brilliant one carat weight, having a VVS2clarity, and a G color, the proportions of the depth may be between 60%and 62%, the table may be between 60% and 62%, the girdle may be mediumto thick without a culet and the polish and symmetry may be graded asgood or higher by the Gemological Institute of America, located inCarlsbad, Calif. (the “GIA”). This particular diamond, or a number ofsuch diamonds, may be deliverable at any pre-determined date in thefuture, but more particularly at one month, two months, three months,four months etc. into the future. A computer based system preferablysimilar to, or integrated with server 104 will create the standardprofile and then post futures or options contracts based on thatprofile.

FIG. 3 shows a typical grading report 300 for a diamond. Grading report300 may typically include shape 310, color grade 320, clarity grade 330,weight 340, proportions 350 (including depth 352, table 354, girdle 356,and culet 358), and finish 360 (including polish 362 and symmetry 364.)As described above a pre-determined diamond profile can be standardizedfor future delivery to obtain a base value, or, alternatively, abenchmark, for a diamond futures and/or options contract. Such gradingreports are offered, for example, by the GIA and include relevantinformation for forming a profile of a diamond. A copy of a detailedgrading report—e.g., a GIA certificate—may be included with the deliveryof the diamond at the termination of the contract.

FIG. 4 shows a method 400 according to the invention. The method showsstandardizing a diamond profile at step 410. The method also showsoffering a futures and/or options contract based on the standard diamondprofile at step 420. In an alternative embodiment of the invention, anumber of different diamond profiles may be standardized.

FIG. 5 shows a method 500 of forming a security based on the spreadbetween one particular deliverable—i.e., a diamond at a first diamondprofile—and a second particular deliverable—i.e., a diamond at a seconddiamond profile. The method includes standardizing a first diamondprofile 510, determining a second diamond profile 520, and forming afutures and/or options contract based on the difference between thevalue of the standard diamond associated with the first diamond profileand the value of an actual diamond associated with the second diamondprofile 530. In this fashion, the difference in value—i.e., thespread—between the first diamond and the second diamond may be traded aswell. With this spread, either the first, standardized or benchmark,diamond value or the second diamond value may be used as the bench markfor this other value or for a plurality of values.

Standardization of diamond contracts allows future positions to beliquidated easily—e.g., through an exchange or a clearinghouse—ratherthan by negotiating with the other party to the contract. Thus, afutures and/or options contract preferably adds much-needed liquidity toa particularly illiquid market. This is because the exchange binds eachparty to perform the contract. Guaranteed performance of each partypreferably eliminates the need for costly credit checks on othertraders. Thus transaction costs are substantially reduced by requiringonly a good faith deposit to insure good credit of the traders.

Another example of a system and method according to the inventionrelates to futures and/or options contracts for wine. The scarcity anddelicate quality of wine tends to reduce the liquidity of the winemarket. According to the invention, however, it is possible to increasethe liquidity of the market by standardizing a wine profile to create abenchmark and for trading futures and/or options contracts for the winebased on the standard wine profile.

Wine can also be classified and selected based on its own unique set ofcriteria: type, geographic region, winery, vintage, and price range.

A specific wine or a group of wines may be selected based upon some orall of these five criteria. The wine type can be very broad such assimply red or white. Type can also refer to the specific designation ofthe wine—e.g., Cabernet Sauvignon, Merlot, Chardonnay or Riesling.Designation of a specific geographic region, winery, vintage and pricerange can also be used to select a particular wine or group or wines.The specificity with which these criteria are designated will determinethe breadth of wine selection—i.e., a person with very specific needsmay request a 2001 Nappa Valley Chardonnay whereas another person maysimply need a red wine that costs around $10.

FIG. 6 shows a graphical user interface 600 according to the inventionthat may be used to select a futures and/or options contract relating toa future transaction for wine. Interactive screen section 610 shows anarea in which the user may select the type of wine. Interactive screensection 620 shows an area in which the user may select a particulargeographic location of the vineyard. Interactive screen section 630shows an area in which the user may select a particular winery thatproduced the wine. Interactive screen section 640 shows an area in whichthe user may select a particular vintage, or year of production, of thewine. Finally, interactive screen section 650 shows a price, or range ofprices, of the wine.

Once a user has selected his preferred criteria of wine, area thensection 660 preferably shows a single wine or group of wines that fitinto the selected user criteria. Once a group of wines appears in area660, the user may preferably click on the wine to transfer to futuresand/or options screens as shown in FIGS. 7 and 8, and described in moredetail below. Alternatively once a desired wine is highlighted, the usermay click on the “See futures and/or options contracts” button 670 toobtain futures and options information. It should be noted that thisparticular interface may be used for any luxury item as an interface toefficiently obtain a desired contract the he wishes to participate in.

FIG. 7 shows an example of a futures screen for the trading of winefutures contracts. After selecting a particular futures contract orgroup of futures contracts, this screen displays relevant marketinformation. The information on the screen may typically include thesymbol of the pertinent futures contract 710, the opening price for thefutures contract 720, the highest and lowest value the futures contracttraded at within a specified period 730, the price of the last futurescontract traded 740, the settlement price 750—i.e., the current price ofthe futures contract, the last change in price 760, and the openinterest 770—i.e., the total number of futures contracts traded thathave not yet been liquidated.

FIG. 8 shows an example of an options screen for the trading of wine.After selecting a particular option, this screen displays relevantmarket information. The information on the screen may typically includeinformation on a Calls 810, which are options to buy futures contracts,as well as Puts 820, which are options to sell futures contracts. Foreach of these transactions, the screen will contain relevant market datafor each item represented by its particular symbol 801. The market datamay include such information as the amount paid for the last option 802,the last change in price 803, the highest price being currently offeredto buy the option 804, the lowest price for which the option is beingsold 805, the volume of shares traded 806, the open interest 807—i.e.,the total number of options contracts traded that have not yet beenliquidated, and the strike price—i.e., the stated price per share forwhich the future may be purchased (in the case of a call) or sold (inthe case of a put) by the option holder upon exercise of the optioncontract.

In the case where there is not an existing futures or options contractbased on the selected criteria, the user may create a new futures oroptions contract. This will allow the trading of any available diamond,wine, or luxury item.

Due to the existing illiquid nature of the markets for luxury items, itmay be useful for the methods and systems of the present invention toelectronically collect market information to aid in the settlement ofluxury item contracts. This information can be organized in the form ofa luxury item index—a statistical composite that measures changes inthat specific financial market. In order to create a luxury item index,the system may electronically capture—e.g., retrieve and preserve in alasting form—compile—e.g., arrange or compose from materials gatheredfrom several sources—sort—e.g., classify according to a suitableclassification system according to class, kind, size, or other suitablecriteria—and update relevant data preferably in real time or othersuitable pre-determined interval. The result of these systems andmethods would be to provide an index for any type of luxury item, groupof luxury items, or in fact, any type of less liquid, but exchangedcommodity or item. This index could then be used to help settle optionsor futures contracts or even in certain circumstances, cash contracts aswell.

Examples of this method may include providing an index for diamondprices. This diamond index may be based on available price lists fordiamonds—i.e. the Rapaport Sheets—and other similar industry price listswhich may be electronically obtainable.

Advantages of systems and methods according to the invention includeallowing a diamond merchant or wine merchant to limit the risk on hisfuture purchase or sale of the respective products. Thus, if diamondretailer A wanted to insure his supply of diamonds for the upcomingholiday season, he may contract to purchase X amount of diamonds inDecember at a specific price. Though retailer A may pay a premium forthe right to buy the diamond in December at a particular price, he isprotected from supply problems or other vagaries of the marketplace thatmay occur between the time when he entered into the contract and thesettlement date in December. This is one example of risk-sharingadvantages obtained by systems and methods according to the invention.

Alternatively, systems and methods according to the invention mayprovide speculators an opportunity to invest in items and markets that,in the past, were not liquid enough to allow for investment by thegeneral public. Systems and methods for creating indexes for these itemsor markets can help improve their overall liquidity.

An example of such a market that supports such an index may be housingvalues. An index may be created for housing values in a particulararea—Inputs to such a housing index may be real estate price surveys,mortgage applications, or some other suitable input that may be obtainedelectronically and used for input into an index processor. In such asystem and method according to the invention, the index further may bedivided according to regions or may be user-configurable such that theuser may create his own index for use according to a user specifiedregion, preferably assuming that the region was sufficiently large tocreate a usable index. Users could specify a large geographicregion—e.g., the Northeast Region of the U.S., or they could specify aparticular city—e.g., New York City, or they could specify a particulararea within the city—e.g., SOHO or they could specify a particularzip-code or other suitable regional limitation. The system and methodsaccording to the invention would then generate a housing values indexfor that specified region.

One use for this system and method according to the invention is toenable the trading of futures and options contracts based on thishousing values index. The ability to trade futures and options based onthis index would allow banks to reduce their exposure to risk from theirmortgage portfolios.

Another example of a market that supports such an index may be mortgageprepayments—This information may be obtained from banking institutions.

Another example of a market that supports such an index may be based onprivately-held companies. Such an index may use the publicly-availableEBIDTA (Earnings Before Interest Depreciation and Taxes) as the providerof the data.

One underlying theme of these systems and methods according to theinvention is that an index may be created from any sufficiently liquidpoints of value.

Another aspect of the invention involves Internet or intranet auctions.In recent years, on-line auction sites have grown as a place forindividuals to buy and sell items. Due to the transient nature of theindividualized transactions on these sites, it can be difficult todetermine the proper valuation or auction method for a particularauction item without painstakingly reviewing the transaction history ofmany other similar auction items. For example, changes in the number ofsimilar items being auctioned at a given site at a given time maydrastically affect the final price or, with respect to used items, smalldifferences in condition may drastically affect the price paid for theauction item. The auction method used, such as the choice of auctiontype, e.g., standard auction, reserve price auction, private auction,Dutch auction, or auction length or opening bid, may also affect theprice paid for the auction item. The particular Internet auction siteused might also affect the final price paid for an auction item. Bytracking auctions of particular items over a longer period of time andover many different auction sites, buyers and sellers can make betterdecisions with regard to pricing as well as the best method forconducting the auction.

In this embodiment of the invention, liquidity and distribution ofauction items can be improved through systems and methods that tracktransactions of Internet auction sites. By tracking Internet auctionssites for pending and completed auctions the systems and methods of thisinvention can provide information which is useful for determiningvaluation or best auction method for a particular auction item. Thetracking of Internet auction sites can be performed by, searching theInternet auction sites, capturing, compiling, extracting a possiblyuser-specified portion of the data, performing possibly user-specifiedcalculations with this extracted data, and updating the data and theresults.

Furthermore, these systems and methods of the invention relate to a dataprocessing methodology and system for a universal, uniform system fortracking auction data by searching, capturing, compiling, extracting,calculating, and updating. These systems and methods could be used forauction items such as: diamonds, wine, motor vehicles, boats, antiques,artwork, real property, and securities or any suitable auctioned items.More precisely, it relates to a computerized system containing a serversimilar to 104 by which all current systems are converted in a uniformmanner to a unique but universal system, by creating and thencentralizing, that single system as the single source of the system sothat data may be searched, captured, compiled, sorted, extracted,arranged in such a manner to allow calculations to performed on thedata, calculated and updated from a variety of sources and accurate,from which up-to-date values may be established preferably in real-time,though it may also be establish at any suitable pre-determined interval.This system may be preferably accessed through a plurality ofworkstations similar to workstation 101. Through these workstations, auser may access the server to view the tracked auction data and may alsoconfigure the searching, capturing, compiling, sorting, extracting,calculating, and updating the data.

Records for Internet auctioned items are currently maintained by variousunrelated parties because auctions generally occur at disparatelocations on the Internet. Therefore, Internet auctioned items are notconducive to price transparency. Furthermore, there is no currentuniversal system or means for searching and then universallycentralizing all records to ensure that all information is up to date,accurate and accessible to various unrelated parties.

Through systems and methods according to the invention, users will beable to view auction statistics and other relevant informationcalculated from auction data. Preferably, by specifying criteria for aparticular item or items and specifying the type of information desired,a user will be presented with relevant statistical data which will behelpful for participating in an Internet auction. The statistical datafor each auction in progress and completed auction, may preferablycontain information relevant to the successful bids, the unsuccessfulbids, the final price, the method of auction, as well as validation ofthe auction data.

FIG. 9 shows a graphical user interface 900 according to the inventionthat may be used to perform a search of auction data based upon usercriteria. In this case, the user has already selected PDAs as thecategory 910 for the search. For each category of items selected, thesearch interface 900 contains search options to define the scope of thesearch. The number and specific type of options available will depend onthe category selected. For PDAs, there are seven search options.Interactive screen section 920 shows an area in which a user may selectthe brand. Interactive screen section 930 shows an area in which a usermay select the model. Interactive screen section 940 shows an area inwhich a user may select the screen type. Interactive screen section 950shows an area in which a user may select the amount of memory.Interactive screen section 960 shows an area in which a user may selectthe internet connectivity. Interactive screen section 970 shows an areain which a user may select the condition of the PDA beingauctioned—i.e., new or used. Further gradations (e.g.—condition 1-10)may also be used. Interactive screen section 980 shows an area in whicha user may select the time frame to be searched—i.e., currently pendingauctions only or all auctions that occurred over a specified period.After the user specifies the criteria desired for the search, the usermay select the Search button 990 to perform the search.

FIG. 10 shows a graphical user interface 1000 according to the inventionthat may be used to display the results of the auction data search.Screen section 1010 shows the category searched. Screen section 1020shows the search criteria selected by the user. Interactive screensection 1030 shows selected statistics calculated from the search. Oneor more statistics, such as average price, high price, low price,auction duration, units sold, and unit available, may be selected andthe user may click on “View Expanded Statistics” 1050 to display moredetailed information, which may include charts or graphs, for eachstatistical item. Interactive screen section 1040 preferably shows theauctions that match the users selected criteria. The screen section maydifferentiate between the pending and completed auctions. The user mayselect one or more auctions and click “View Auction Information” 1060,to view the specific information about the auction(s) selected includingverification data. The user may also select one or more auctions andclick “Remove From Stats” 1070, to remove auction(s) from beingcalculated in the statistics.

Accordingly, systems and methods for providing liquidity anddistribution networks for luxury and other items are provided. It willbe understood that the foregoing is merely illustrative of theprinciples of the invention and that various modifications can be madeby those skilled in the art without departing from the scope and spiritof the invention, with is limited only by the claims that follow.

1. A method comprising: creating a standard diamond profile; and postinga futures or options contract based on the diamond profile.
 2. Themethod of claim 1, the creating a standard profile further comprisingspecifying a pre-determined value for color, cut, clarity and weight. 3.The method of claim 2 the standardizing further comprising specifyingthe value for cut comprising specifying a range of values at least oneof the angle of the table, the characteristics of the girdle, thecharacteristic of the culet, the characteristic of the polish, and forthe physical dimensions of the diamond.
 4. The method of claim 1 furthercomprising providing delivery of at least a single diamond insatisfaction of the futures or options contract.
 5. The method of claim4 further comprising providing a certified grading report associatedwith the delivery of the at least a single diamond.
 6. A method fortrading of diamonds futures or options contracts in a computer-basedfutures or options exchange system, comprising: accessing a listing of aplurality of diamonds futures or options contracts; selecting a diamondsfutures or options contract from the listing; and viewing trading statusof the diamonds futures or options contract.
 7. A method comprising:offering a diamond futures or options contract; and executing a trade ofthe diamond futures or options contract based on the offering.
 8. Amethod comprising: creating a standard wine profile; and posting afutures or options contract based on the wine profile.
 9. The method ofclaim 8 the creating a standard wine profile further comprisingidentifying criteria for at least one of type, region, winery, vintageand price.
 10. The method of claim 8 further comprising providingdelivery of at least a single wine in satisfaction of the futures oroptions contract.
 11. A method for trading of wine futures or optionscontracts in a computer-based futures or options exchange system,comprising: accessing a listing of a plurality of wine futures oroptions contracts; selecting a wine futures or options contract from thelisting; and viewing trading status of the wine futures or optionscontract.
 12. A method comprising: offering a wine futures or optionscontract; and executing a trade of the wine futures or options contractbased on the offering.
 13. A method comprising: creating a standardluxury item profile; and posting a futures or options contract based onthat profile.
 14. The method of claim 13 where the luxury item isdiamonds.
 15. The method of claim 13 where the luxury item is wine. 16.The method of claim 13 further comprising providing delivery of at leasta single luxury item based on the futures or options contract.
 17. Amethod comprising: creating a custom luxury item profile based on userinput; posting a futures or options contract based on that profile. 18.The method of claim 17 where the luxury item is diamonds.
 19. The methodof claim 17 where the luxury item is wine.
 20. The method of claim 17further comprising providing delivery of at least a single luxury itembased on the futures or options contract.
 21. A method for trading ofluxury item futures or options contracts in a computer-based futures oroptions exchange system, comprising: accessing a listing of a pluralityof luxury item futures or options contracts; selecting a luxury itemfutures or options contract from the listing; and viewing trading statusof the luxury item futures or options contract.
 22. A method comprising:offering a luxury item futures or options contract; and executing atrade of the luxury item futures or options contract based on theoffering.
 23. A method for creating an index for the support of diamondsfutures or options contracts comprising: electronically capturingdiamond data from industry price lists; electronically compiling thediamond data; electronically sorting the diamond data; andelectronically updating the diamond data to form a diamond index.
 24. Amethod for creating an index for the support of wine futures or optionscontracts comprising: electronically capturing the wine data fromindustry price lists; electronically compiling the wine data;electronically sorting the wine data; and electronically updating thewine data to form a wine index.
 25. A method for creating an index forthe support of luxury item futures or options contracts comprising:electronically capturing luxury item data from industry price lists;electronically compiling the luxury item data; electronically sortingthe luxury item data; and electronically updating the luxury item datato form a luxury item index.
 26. The method of claim 24 where luxuryitem is diamonds.
 27. The method of claim 24 where luxury item is wine.28. A method for creating an index for housing values comprising:electronically capturing housing values data from real estate pricesurveys; electronically compiling the housing values data;electronically sorting the housing values data; and electronicallyupdating the housing values data to create a housing values index. 29.The method of claim 28 further comprising creating the index for aparticular region.
 30. The method of claim 28 further comprisingrestricting the capturing of the data to a particular region.
 31. Themethod of claim 28 further comprising creating the index based on userinputted criteria.
 32. A method for creating an index for housing valuescomprising: electronically capturing housing values data from mortgageapplications; electronically compiling the housing values data;electronically sorting data the housing values data; and electronicallyupdating the housing values data to form a housing values index.
 33. Themethod of claim 32 further comprising creating the index for aparticular region.
 34. The method of claim 32 further comprisingrestricting the capturing of the data to a particular region.
 35. Themethod of claim 32 further comprising creating the index based on userinputted criteria
 36. A method for creating an index for privately-heldcompanies comprising: electronically capturing data about privately-heldcompanies from Earnings Before Interest Depreciation and Taxes (EBIDTA);electronically compiling the data about privately-held companies;electronically sorting the data about privately-held companies; andelectronically updating the data about privately-held companies to forma privately-held company index.
 37. A method for creating an index formortgage prepayments comprising: electronically capturing mortgageprepayment data from banking institutions; electronically compiling themortgage prepayment data; electronically sorting the mortgage prepaymentdata; and electronically updating the mortgage prepayment data to form amortgage prepayment index.
 38. A method for tracking Internet auctionscomprising: providing an access tool that is user configurable toelectronically search at least one Internet auction site for auctiondata; capturing the data; compiling the data; extracting a portion ofthe auction data; and providing a calculation tool that is userconfigurable to perform at least one user-defined calculation on theextracted portion of the auction data.
 39. The method of claim 38further comprising searching a plurality of Internet auction sites. 40.The method of claim 38 further comprising tracking auctions in progress.41. The method of claim 38 further comprising tracking completedauctions.
 42. The method of claim 38 further comprising tracking bidvalidation for completed auctions over a computer network.
 43. Themethod of claim 38 further comprising tracking a bid validation forauctions in progress over a computer network.
 44. The method of claim 38further comprising extracting the data based on pre-determined criteria.45. The method of claim 38 further comprising extracting the data basedon user-inputted criteria.
 46. The method of claim 38 further comprisingcalculating the extracted data based on pre-determined criteria.
 47. Themethod of claim 38 further comprising calculating the extracted databased on user-inputted criteria.
 48. The method of claim 38 wherecalculating the extracted portion of the auction data further comprisescomparing different auction methods and the final price paid forcompleted auctions.
 49. The method of claim 38 where calculating theextracted portion of the auction data further comprises comparingdifferent auction methods and the final price received for completedauctions.
 50. The method of claim 38 where calculating the extractedportion of the auction data further comprises calculating the lowestprice paid in a completed auction.
 51. The method of claim 38 wherecalculating the extracted portion of the auction data further comprisescalculating the highest price paid in a completed auction.
 52. Themethod of claim 38 where calculating the extracted portion of theauction data further comprises calculating the mean price paid in acompleted auction.
 53. The method of claim 38 where calculating theextracted portion of the auction data further comprises calculating themedian price paid in a completed auction.
 54. The method of claim 38where calculating the extracted portion of the auction data furthercomprises calculating the mode of prices paid in a completed auction.55. The method of claim 38 where calculating the extracted portion ofthe auction data further comprises calculating the range of prices paidin a completed auction.
 56. The method of claim 38 where calculating theextracted portion of the auction data further comprises calculating thedeviation of prices paid in a completed auction.
 57. The method of claim38 where calculating the extracted portion of the auction data furthercomprises calculating relevant statistical metrics.
 58. The method ofclaim 38 where calculating the extracted portion of the auction datafurther comprises performing at least one calculation with at least onepiece of auction data.
 59. The method of claim 38 where calculating theextracted portion of the auction data further comprises creating a graphbased on the data.
 60. The method of claim 38 where calculating theextracted portion of the auction data further comprises creating a graphof prices paid in a completed auction over a period of time.
 61. Themethod of claim 38 further comprising updating the data in real-time.62. The method of claim 38 further comprising updating the data atsuitable pre-determined intervals.
 63. The method of claim 39 wherecalculating the extracted portion of the auction data further comprisescomparing different Internet auction sites, auction methods, and the bidhistory for auctions in progress.
 64. The method of claim 39 wherecalculating the extracted portion of the auction data further comprisescomparing different Internet auction sites, auction methods, and thefinal price received for completed auctions.
 65. A system comprising: astorage device; a processor connected to the storage device, the storagedevice storing a program for controlling the processor, the processoroperative with the program to: create a standard diamond profile; andpost a diamond futures or options contract based on the profile.
 66. Thesystem of claim 65 the standard diamond profile comprising apre-determined value for color, cut, clarity and weight.
 67. The systemof claim 66, the standard diamond profile further comprising the valuefor cut comprising specifying a range of values at least one of theangle of the table, the characteristics of the girdle, thecharacteristic of the culet, the characteristic of the polish, and forthe physical dimensions of the diamond.
 68. A system for trading ofdiamond futures or options contracts, the system comprising: a servercomprising: a server storage device; a server processor connected to theserver storage device, the server storage device storing a program forcontrolling the server processor; and the server processor operativewith the program to transact a trade of the diamond futures or optionscontracts; a plurality of workstations, each of the plurality ofworkstations operative to communicate with the server, each of theworkstations comprising: a workstation storage device; a workstationprocessor connected to the workstation storage device, the workstationstorage device storing a workstation program for controlling theworkstation processor, the workstation processor operative with theworkstation program to: access a listing of a plurality of diamondsfutures or options contracts; select a diamond futures or optionscontract from the listing; view trading status of the diamonds futuresor options contract; and enter into and proceed with trades; a clearingcenter operative to communicate with the server, the clearing centercomprising: a clearing storage device; and a clearing processorconnected to the clearing storage device, the clearing storage devicethat stores a clearing program for controlling the clearing processor,the clearing processor that is operative with the clearing program tocause the transactions to be completed and cleared and to verify thatthe transactions are completed and cleared.
 69. A system comprising: astorage device; a processor connected to the storage device, the storagedevice storing a program for controlling the processor, the processoroperative with the program to: create a standard wine profile; and posta wine futures or options contract based on the profile.
 70. The systemof claim 69, the standard wine profile further comprising criteria forat least one of type, region, winery, vintage and price.
 71. A systemfor trading of wine futures or options contracts, the system comprising:a server comprising: a server storage device; a server processorconnected to the server storage device, the server storage devicestoring a program for controlling the server processor; and the serverprocessor operative with the program to transact a trade of the winefutures or options contracts; a plurality of workstations, each of theplurality of workstations operative to communicate with the server, eachof the workstations comprising: a workstation storage device; aworkstation processor connected to the workstation storage device, theworkstation storage device storing a workstation program for controllingthe workstation processor, the workstation processor operative with theworkstation program to: access a listing of a plurality of wines futuresor options contracts; select a wine futures or options contract from thelisting; view trading status of the wines futures or options contract;and enter into and proceed with trades; a clearing center operative tocommunicate with the server, the clearing center comprising: a clearingstorage device; and a clearing processor connected to the clearingstorage device, the clearing storage device that stores a clearingprogram for controlling the clearing processor, the clearing processorthat is operative with the clearing program to cause the transactions tobe completed and cleared and to verify that the transactions arecompleted and cleared.
 72. A system comprising: a storage device; aprocessor connected to the storage device, the storage device storing aprogram for controlling the processor, the processor operative with theprogram to: create a standard luxury item profile; and post a luxuryitem futures or options contract based on the profile.
 73. The system ofclaim 72 where the luxury item is diamonds.
 74. The system of claim 72where the luxury item is wine.
 75. A system comprising: a storagedevice; a processor connected to the storage device, the storage devicestoring a program for controlling the processor, the processor operativewith the program to: create a custom luxury item profile; and post aluxury item futures or options contract based on the custom profile. 76.The system of claim 75 where the luxury item is diamonds.
 77. The systemof claim 75 where the luxury item is wine.
 78. A system for trading ofluxury item futures or options contracts, the system comprising: aserver comprising: a server storage device; a server processor connectedto the server storage device, the server storage device storing aprogram for controlling the server processor; and the server processoroperative with the program to transact a trade of the luxury itemfutures or options contracts; a plurality of workstations, each of theplurality of workstations operative to communicate with the server, eachof the workstations comprising: a workstation storage device; aworkstation processor connected to the workstation storage device, theworkstation storage device storing a workstation program for controllingthe workstation processor, the workstation processor operative with theworkstation program to: access a listing of a plurality of luxury itemsfutures or options contracts; select a luxury item futures or optionscontract from the listing; view trading status of the luxury itemsfutures or options contract; and enter into and proceed with trades; aclearing center operative to communicate with the server, the clearingcenter comprising: a clearing storage device; and a clearing processorconnected to the clearing storage device, the clearing storage devicethat stores a clearing program for controlling the clearing processor,the clearing processor that is operative with the clearing program tocause the transactions to be completed and cleared and to verify thatthe transactions are completed and cleared.
 79. A system for creating anindex for the support of diamond futures or options contracts, thesystem comprising: an index processor operative to: electronicallycapture diamond data from industry price lists; electronically compilethe diamond data; electronically sort the diamond data; andelectronically update the diamond data to form a diamond index.
 80. Asystem for creating an index for the support of wine futures or optionscontracts, the system comprising: an index processor operative to:electronically capture wine data from industry price lists;electronically compile the wine data; electronically sort the wine data;and electronically update the wine data to form a wine index.
 81. Asystem for creating an index for the support of luxury item futures oroptions contracts, the system comprising: an index processor operativeto: electronically capture luxury item data from industry price lists;electronically compile the luxury item data; electronically sort theluxury item data; and electronically update the luxury item data to forma luxury item index.
 82. The system of claim 81 where the luxury item isdiamonds.
 83. The system of claim 81 where the luxury item is wine. 84.A system for creating an index for housing values, the systemcomprising: an index processor operative to: electronically capturehousing values data from real estate price surveys; electronicallycompile the housing values data; electronically sort the housing valuesdata; and electronically update the housing values data to form ahousing values index.
 85. The system of claim 84 the index for housingvalues data restricted to a particular region.
 86. The system of claim84 the electronically capturing of the housing values data restricted toa particular region.
 87. The system of claim 84 the index for housingvalues data created based on user inputted criteria.
 88. A system forcreating an index for housing values, the system comprising: an indexprocessor operative to: electronically capture housing values data frommortgage applications; electronically compile the housing values data;electronically sort the housing values data; and electronically updatethe housing values data to form a housing values index.
 89. The systemof claim 84 the index for housing values data restricted to a particularregion.
 90. The system of claim 84 the electronically capturing of thehousing values data restricted to a particular region.
 91. The system ofclaim 84 the index for housing values data created based on userinputted criteria.
 92. A system for creating an index for privately-heldcompanies, the system comprising: an index processor operative to:electronically capture privately-held companies data from EarningsBefore Interest Depreciation and Taxes (EBIDTA); electronically compilethe privately-held companies data; electronically sort theprivately-held companies data; and electronically update theprivately-held companies data to form a privately-held companies index.93. A system for creating an index for mortgage prepayments, the systemcomprising: an index processor operative to: electronically capturemortgage prepayment data from banking institutions; electronicallycompile the mortgage prepayment data; electronically sort the mortgageprepayment data; and electronically update the mortgage prepayment datato form a mortgage prepayment index.
 94. A system for tracking Internetauctions, the system comprising: a server comprising: a server storagedevice; a server processor connected to the server storage device, theserver storage device storing a server program for controlling theserver processor, the server processor operative with the server programto: electronically search at least one Internet auction site for auctiondata; capture the auction data; compile the auction data; extract aportion of the auction data; and perform at least one calculation on theextracted portion of the auction data; a plurality of workstationsoperative to communicate with the server, the workstation comprising: aworkstation storage device; a workstation processor connected to theworkstation storage device, the workstation storage device storing aworkstation program for controlling the workstation processor, theworkstation processor operative with the workstation program to: viewthe extracted auction data; view the calculated auction data; and enablethe user to configure the searching, capturing, compiling, sorting,extracting, and arranging of the auction data.
 95. The system of claim94 wherein the server processor is further operative with the serverprogram to search a plurality of Internet auction sites.
 96. The systemof claim 94 wherein the server processor is further operative with theserver program to search auctions in progress.
 97. The system of claim94 wherein the server processor is further operative with the serverprogram to search completed auctions.
 98. The system of claim 94 whereinthe server processor is further operative with the server program totrack bid validation for completed auctions over a computer network. 99.The system of claim 94 wherein the server processor is further operativewith the server program to track bid validation for auctions in progressover a computer network.
 100. The system of claim 94 wherein the serverprocessor is further operative with the server program to extract thedata based on pre-determined criteria.
 101. The system of claim 94wherein the server processor is further operative with the serverprogram to extracting the data based on user-inputted criteria.
 102. Thesystem of claim 94 wherein the server processor is further operativewith the server program to calculate the extracted data based onpre-determined criteria.
 103. The system of claim 94 wherein the serverprocessor is further operative with the server program to calculate theextracted data based on user-inputted criteria.
 104. The system of claim94 wherein the server processor operative with the server program toperform calculations on the extracted portion of the auction datacompares different auction systems and the final price paid forcompleted auctions.
 105. The system of claim 94 wherein the serverprocessor operative with the server program to perform calculations onthe extracted portion of the auction data compares different auctionsystems and the final price received for completed auctions.
 106. Thesystem of claim 94 wherein the server processor operative with theserver program to perform calculations on the extracted portion of theauction data calculates the lowest price paid in a completed auction.107. The system of claim 94 wherein the server processor operative withthe server program to perform calculations on the extracted portion ofthe auction data calculates the highest price paid in a completedauction.
 108. The system of claim 94 wherein the server processoroperative with the server program to perform calculations on theextracted portion of the auction data calculates the mean price paid ina completed auction.
 109. The system of claim 94 wherein the serverprocessor operative with the server program to perform calculations onthe extracted portion of the auction data calculates the median pricepaid in a completed auction.
 110. The system of claim 94 wherein theserver processor operative with the server program to performcalculations on the extracted portion of the auction data calculates themode of prices paid in a completed auction.
 111. The system of claim 94wherein the server processor operative with the server program toperform calculations on the extracted portion of the auction datacalculates the range of prices paid in a completed auction.
 112. Thesystem of claim 94 wherein the server processor operative with theserver program to perform calculations on the extracted portion of theauction data calculates the deviation of prices paid in a completedauction.
 113. The system of claim 94 wherein the server processoroperative with the server program to perform calculations on theextracted portion of the auction data calculates relevant statisticalmetrics.
 114. The system of claim 94 wherein the server processoroperative with the server program to perform calculations on theextracted portion of the auction data calculates at least onecalculation with at least one piece of auction data.
 115. The system ofclaim 94 wherein the server processor operative with the server programto perform calculations on the extracted portion of the auction data isfurther operative to create a graph based on the data.
 116. The systemof claim 94 wherein the server processor operative with the serverprogram to perform calculations on the extracted portion of the auctiondata is further operative to create a graph of prices paid in acompleted auction over a period of time.
 117. The system of claim 94wherein the server processor is further operative with the serverprogram to update the data in real-time.
 118. The system of claim 94wherein the server processor is further operative with the serverprogram to update the data at suitable pre-determined intervals. 119.The system of claim 95 wherein the server processor operative with theserver program to perform calculations on the extracted portion of theauction data compares different Internet auction sites, auction systems,and the bid history for auctions in progress.
 120. The system of claim95 wherein the server processor operative with the server program toperform calculations on the extracted portion of the auction datacompares different Internet auction sites, auction systems, and thefinal price paid for completed auctions